SHANGHAI PLANT, UTILIZING THE APPROPRIATE DECISION ANALYSIS TOOL. Shuzworld is in need of a production plan for a total of 50 batches of Kidshuz shoes and sneakers for the coming month. The forecasted demand requires Shuzworld to produce at least 25 batches of the shoes and 10 batches of the sneakers. The latest figures show that a batch of shoes cost $2,000- dollars to produce, and a batch of sneakers cost $1,500- dollars per batch. Shuzworld needs a production plan that meets all of these constraints, and at the same time they want to minimize the production costs.
Another alternative being considered is paying the store manager a 50 cent commission on each shoe sold in excess of the break-even point. Being that 2,500 shoes were sold in excess of the 12, 500 shoes needed to break-even, the operating income has increased and is now approximately $40,000. Lastly, eliminating sales commissions entirely in the shops and increasing fixed salaries by $31,500 annually will make the break-even point for units sold 11, 000 and dollar sales
Cynthia Crowninshield states, "It's very important that when you make recommendations that you provide both the output of your analysis along with the reasons for the course of action you've recommended (Case Study, 2015).” Assembly line issues The Shanghai management team goes over some key issues they feel are influencing their assembly line. Wu says. "We are budgeted to produce 6 work boots an hour, with a 40-hour workweek (Case Study, 2015)." However, there are 8 steps and it’s taking approximately 46 minutes per boot. The Shanghai production plant produced Rugged Wear Work Boots at its facility.
How many orders can you fill in a night, assuming you are open four hours each night? To answer this question we used another table to show the time required to finish producing the maximum amount of orders within the 4 hour time frame. We found that it takes 26 minutes to prepare the first dozen of cookies and an additional 10 minutes for each extra dozen. In 4 hours Kristen’s Cookie can bake 22 dozen of cookies. A formula for the number of minutes to produce one-dozen order can be given by this expression: 16+10N 3.
Daily demand 1,000 connectors Lead time 2 days Safety stock day Kanban size 500 connectors 16.3 Chris Millikan Manufacturing, Inc., is moving to kan-bans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. 16.5 Discount-Mart, a major East Coast retailer, wants to determine the economic order quantity (see Chapter 12 for EOQ formulas) for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting Manufacturers, in Atlanta. Annual demand is 2,000 lamps, ordering cost per order is $30, annual carrying cost per lamp is $12.
Kristen Cookie Case 1. For order size 2 dozen: What is the process throughput time? What is the bottle neck process? How many cookies can be produced in a 4-hour working night? To determine the throughput time for an order of 2 dozens, we first observe that certain activities can be performed in parallel.
Daily demand 1,000 connectors Lead time 2 days Safety stock day Kanban size 500 connectors 16.3 Chris Millikan Manufacturing, Inc., is moving to kan-bans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. 16.5 Discount-Mart, a major East Coast retailer, wants to determine the economic order quantity (see Chapter 12 for EOQ formulas) for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting Manufacturers, in Atlanta. Annual demand is 2,000 lamps, ordering cost per order is $30, annual carrying cost per lamp is $12.
1. How long will it take you to fill a rush order? Task | By who? | Cycle time | Cumulate Time | Take the order | Computer | 0 min | 0 min | Wash out / Mix ingredients | Me | 6 min | 6 min | Spoon | Me | 2 min | 8 min | Put in the oven, thermostat, timer | Roommate | 1 min | 9 min | Bake | Oven | 9 min | 18 min | Remove cookies, cool | Tray | 5 min + 0 min | 23 min | Packing | Roommate | 2 min | 25 min | Payment | Roommate | 1 min | 26 min | 1. How many orders can you fill in a night, assuming you are open four hours each night ?
(Points : 5) A budget that is developed for a single level of activity A budget that analyzes existing activities (and continuation of that activity must be justified and resources needed must be justified by each manager) A budget that is based solely on prior period information, adjusted for inflation A budget that is continuous or rolling Question 11.11. (TCO 5) Bug Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled production of buggies for the next 2 months is 500 and 600 units, respectively. Beginning inventory is 4,000 units of wood and 30 units of steel.
If the expected change in variable costs takes place, how many skateboards will have to be sold next year to earn the same net operating income, $120,000, as last year? * 4. Refer again to the data in (2) above. The president has decided that the company may have to raise the selling price of its skateboards. If Tyrene Products wants to maintain the same CM ratio as last year, what selling price per skateboard must it charge next year to cover the increased labor costs?